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Can China reduce the carbon emissions of its manufacturing exports by moving up the global value chain?

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  • Liu, Huizheng
  • Zong, Zhe
  • Hynes, Kate
  • De Bruyne, Karolien

Abstract

This study analyses whether embedding in the global value chain has an impact on the carbon emissions of China’s exports. We develop a carbon decomposition model and use panel data for 14 manufacturing industries in China from 1995 to 2009 to empirically analyse the impact of China’s exports on carbon emissions. Our results show that the GVC effect on China’s carbon emissions embodied in manufacturing exports outweighs the scale, composition and technique effects.

Suggested Citation

  • Liu, Huizheng & Zong, Zhe & Hynes, Kate & De Bruyne, Karolien, 2020. "Can China reduce the carbon emissions of its manufacturing exports by moving up the global value chain?," Research in International Business and Finance, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:riibaf:v:51:y:2020:i:c:s027553191830816x
    DOI: 10.1016/j.ribaf.2019.101101
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    References listed on IDEAS

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    Cited by:

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    2. Wang, Xiaoqing & Sun, Xing & Oprean-Stan, Camelia & Chang, Tsangyao, 2023. "What role does global value chain participation play in emissions embodied in trade? New evidence from value-added trade," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1205-1223.
    3. Feng, Tong & Lin, Zhongguo & Du, Huibin & Qiu, Yueming & Zuo, Jian, 2021. "Does low-carbon pilot city program reduce carbon intensity? Evidence from Chinese cities," Research in International Business and Finance, Elsevier, vol. 58(C).
    4. Yan, Yunfeng & Wang, Ran & Zheng, Xiuxiu & Zhao, Zhongxiu, 2020. "Carbon endowment and trade-embodied carbon emissions in global value chains: Evidence from China," Applied Energy, Elsevier, vol. 277(C).
    5. Opazo-Basáez, Marco & Monroy-Osorio, Juan Carlos & Marić, Josip, 2024. "Evaluating the effect of green technological innovations on organizational and environmental performance: A treble innovation approach," Technovation, Elsevier, vol. 129(C).
    6. Yan, Yunfeng & Li, Xiyuan & Wang, Ran & Pan, An, 2023. "Global value chain and export-embodied carbon emissions: New evidence from foreign-invested enterprises," Economic Modelling, Elsevier, vol. 127(C).
    7. Liu, Zhibin & Huang, Shan, 2021. "Carbon option price forecasting based on modified fractional Brownian motion optimized by GARCH model in carbon emission trading," The North American Journal of Economics and Finance, Elsevier, vol. 55(C).
    8. Shi, Qiaoling & Shan, Yuli & Zhong, Chao & Cao, Ye & Xue, Rui, 2022. "How would GVCs participation affect carbon intensity in the “Belt and Road Initiative” countries?," Energy Economics, Elsevier, vol. 111(C).
    9. Zhiheng Wu & Guisheng Hou & Baogui Xin, 2020. "The Causality between Participation in GVCs, Renewable Energy Consumption and CO 2 Emissions," Sustainability, MDPI, vol. 12(3), pages 1-26, February.
    10. Yuan, Kaihua & Cui, Jingyuan & Zhang, Haipeng & Gao, Xiang, 2023. "Do cleaner production standards upgrade the global value chain position of manufacturing enterprises? Empirical evidence from China," Energy Economics, Elsevier, vol. 128(C).
    11. P., Jithin & Ashraf, Sania, 2023. "Global value chain participation and CO2 emissions: Does economic growth matter? New evidence from dynamic panel threshold regression," Energy Economics, Elsevier, vol. 128(C).
    12. Huang, Yongming & Zhang, Yanan, 2023. "Digitalization, positioning in global value chain and carbon emissions embodied in exports: Evidence from global manufacturing production-based emissions," Ecological Economics, Elsevier, vol. 205(C).

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    More about this item

    Keywords

    Carbon emissions effects of export trade; GVC effect; Scale effect; Composition effect; Technique effect;
    All these keywords.

    JEL classification:

    • F6 - International Economics - - Economic Impacts of Globalization
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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